Bahamas Property Tax Guide 2026

Overview — Real Property Tax in the Bahamas

Real property tax (RPT) is the primary tax on real estate in the Bahamas, administered by the Department of Inland Revenue. The tax is assessed annually on the market value of the property as determined by the government valuation roll. RPT applies to all real estate — residential, commercial, and vacant land — in the Bahamas. The rate varies depending on whether the property is owner-occupied (lower rate) or investment/second home (higher rate). The tax is payable by the property owner as at 1 January each year. The proceeds fund local government services including infrastructure, education, and social services.

Property Tax Rates — 0.5% to 1.5%

The annual real property tax rates for 2026 are structured as follows:

• Owner-occupied (principal residence):
  • 0.5% on the first BSD 250,000 of market value
  • 0.75% on value between BSD 250,001 and BSD 500,000
  • 1.0% on value exceeding BSD 500,000
• Investment/second home/commercial:
  • 1.0% on the first BSD 250,000 of market value
  • 1.25% on value between BSD 250,001 and BSD 500,000
  • 1.5% on value exceeding BSD 500,000

There is no property tax on the first BSD 100,000 of market value for owner-occupied properties (effectively a tax-free threshold). Properties valued below BSD 100,000 are exempt from RPT entirely. Property tax bills are issued annually and are payable by 30 June. Late payment attracts interest at 5% per annum.

Stamp Duty on Transfer — 2% to 10%

When real estate is transferred (sold or gifted), the purchaser pays stamp duty based on the purchase price or market value, whichever is higher. The stamp duty rates are:

• 2% — on the first BSD 100,000 of consideration
• 4% — on the next BSD 100,000 (BSD 100,001–200,000)
• 6% — on the next BSD 100,000 (BSD 200,001–300,000)
• 8% — on the next BSD 100,000 (BSD 300,001–400,000)
• 10% — on the consideration exceeding BSD 400,000

First-time homebuyers purchasing their principal residence under BSD 300,000 may qualify for reduced stamp duty rates. Commercial property transfers may be subject to a flat 10% stamp duty. Stamp duty is payable at the time of registration of the conveyance at the Registrar General's Department.

Exemptions & Reliefs

Certain properties and owners may qualify for exemptions or reduced rates:

• Primary residence exemption — first BSD 100,000 of market value exempt from RPT
• Senior citizens (65+) — additional BSD 50,000 exemption on principal residence
• Disabled persons — additional BSD 50,000 exemption on principal residence
• Agricultural land — reduced RPT rate of 0.25% for bona fide farming operations
• Historic properties — listed heritage buildings may qualify for reduced rates
• New construction — exemption from RPT for the first 2 years after completion for newly built properties

Relief must be claimed by filing an application with the Department of Inland Revenue. Supporting documentation (proof of age, disability certification, or agricultural license) is required.

Valuation & Appeals

Property values for RPT purposes are assessed by the government's Valuation Division. Revaluations are conducted periodically (typically every 5 years). Property owners may appeal their valuation within 60 days of receiving the assessment notice. Appeals are heard by the Valuation Appeal Tribunal. Grounds for appeal include incorrect valuation methodology, errors in property characteristics (size, condition, location), or comparable market evidence showing the valuation is excessive. Engaging a licensed property valuer is recommended for appeals on high-value properties.

FAQs

Do I pay property tax if my property is valued under BSD 100,000?

For owner-occupied properties, the first BSD 100,000 is exempt, so if the market value is BSD 100,000 or less, no RPT is due. For investment properties, there is no exemption, so RPT applies from the first dollar.

Who pays stamp duty — buyer or seller?

The purchaser is responsible for paying stamp duty on property transfers. However, the contract may negotiate who bears the cost. The duty must be paid before the transfer can be registered.

Is there property tax on vacant land?

Yes, vacant land is subject to real property tax at the investment/commercial rates (1–1.5%) regardless of ownership. There is no principal residence exemption for vacant land.

Disclaimer

This guide provides general information about Bahamian property tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Bahamian real estate advisor or the Department of Inland Revenue for advice specific to your situation. InvestmentKit does not provide tax advice.